RBS warns it could face further “material” fines and restitution costs

Banking group RBS has warned it could face further “material” fines and restitution costs over alleged mis-selling and involvement in manipulation of foreign exchanges.

The taxpayer-owned lender published its full interim results for the six months to the end of June after releasing an abridged version to the markets last week because they were significantly stronger than the markets had expected.

It said it was reviewing activities and had received inquiries from watchdogs including the Financial Conduct Authority.

“It is not possible to estimate reliably what effect the outcome of these investigations, any regulatory findings and any related developments may have on the group, including the timing and amount of fines or settlements, which may be material,” RBS said.

The group also said a three-yearly revaluation of its pension arrangements had uncovered a £5.6bn deficit in its funds. Annual payments of £270m will be stepped-up to £920m over the next three years, and remain accelerated at £720m for the seven years thereafter.